K's China, a Chinese restaurant and bar on University Hill, will head before the Boulder liquor board Friday to reclaim its license, which was suspended on the grounds of concern for public safety and welfare.

However, it was how the liquor license was suspended -- made under an unorthodox ruling based on verbal testimony and without the trigger of a liquor law violation -- that has resulted in the city, the Beverage Licensing Authority and the liquor board's members being slapped with a lawsuit.

In the suit, filed last week in Boulder District Court, the owner of K's, 1325 Broadway, alleges the liquor board's actions "were nothing short of an end run around the rules of evidence ... arbitrary and capricious and exceeded the jurisdiction (of the board)."

The city has yet to file a response to the lawsuit.

"We're trying our best to obey the law and to support and comply (with) the law and to help with the community," said Bo Mai, owner of K's. "I feel like the atmosphere of the community changed so abruptly. It looks like they don't want anyone here to do business."

Mai estimates that the 15-day suspension will eat about 30 percent of his business' monthly revenues, which have taken a hit during the economic downturn.

"We are not bad guys," he said. "We just want to comply and want to do business."

The suspension was handed down June 20 during a hearing for the renewal of K's liquor license. The annual renewals typically are conducted administratively, but a public hearing can be made at the request of city departments such as planning, sales tax and zoning, said Mishawn Cook, the city's licensing clerk.

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In this case, the Boulder Police Department requested the renewal go before a public hearing, she said.

According to a recording of the June 20 meeting, Carlene Hofmann, Boulder police's alcohol enforcement officer, said a recent Colorado Liquor Enforcement Division inspection raised some concerns about K's. Hofmann also noted noise complaints, police calls to the University Hill Plaza that she connected to K's, the lack of fake ID's she received from the business and an alleged mid-June incident that involved the dropping of beer bottles from the roof to a sidewalk where a police officer stood.

The state report indicated four violations -- regarding the posting of a food service license and warning signs, food availability and cleanliness -- on the 27-item checklist, according to the document provided to the Camera by the Colorado Department of Revenue.

Hofmann said she researched the calls at the request of Hill neighbors, compiled police reports and presented the documented calls -- which included reports of medical problems, intoxication, assaults and noise -- to K's owners and board members at the June 20 meeting.

The Camera last week began requesting the police calls and reports for K's, but those documents were not available by Tuesday. The Boulder Police Department declined to provide the reports compiled by Hofmann, said Kim Kobel, police spokeswoman.

"K's China has a right to due process in this matter and to ensure that the process remains fair, we are not releasing any documents prepared specifically for the hearing ahead of time," she said in an email to the Camera.

In their lawsuit against the city, K's officials claim that their review of the documents indicated that only seven of the 13 incident reports and citations were related to K's. None involved K's as a liquor law violator, they alleged.

Some of the calls cited by Hofmann at the hearing came from Jane Gray, the house mother of Kappa Alpha Theta, who told the board that the noise from K's and the neighboring Goose was "unbearable" and that she also heard some of the underage members of the sorority drank at K's. The house mother of Kappa Kappa Gamma also expressed similar concerns.

Kim Voorhees, a Boulder resident of 20 years and member of the University Hill Neighborhood Association, told the board she was dismayed about the "culture of alcohol" that exists on the Hill.

"My concern is the violent crime that our neighborhood has experienced because of the culture of alcohol that emanates from the district," Voorhees said at the meeting.

When reached Tuesday, Voorhees declined to comment about specific Hill businesses but said the density of late-night drinking establishments in the small business district are "setting a tone," and the lack of control by some bar operators has created public safety issues.

Mai and his business partner responded that they took the noise and underage drinking concerns "very seriously," asked about certain changes they could make and reiterated that they have not received a liquor violation in the eight years they've owned K's.

Liquor board member Lisa Spalding asked if suspension was a possibility.

"This is really scary," she said.

That triggered a lengthy discussion and members poring through the city code in search of a means to establish an emergency meeting and suspend the license. Citing the testimony that alleged a lack of control, specials that include $5 triple-shot drinks and the police reports, board members settled on a temporary summary suspension of K's license for up to 15 days.

Cook, the city's licensing clerk, told the Camera that the summary suspension is uncommon.

"I have not seen it happen before in my experience," said Cook, who has served in her role for eight years.

As the board neared making a motion, Mai asked for specific evidence.

Board Member Timothy McMurray said the police documents and the public testimony were compelling.

"I can tell you, I haven't even looked at those police reports that were submitted, like I haven't even opened them up and read one thing, and I can probably come up with enough things based on what I've heard here in the testimony here to (suspend the license)," he said.

The emergency hearing is scheduled for 10 a.m. Friday at 1777 W. Broadway.

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